McGraw Hill (NYSE:MH) Shares Gap Up on Better-Than-Expected Earnings

Key Points

• McGraw Hill shares jumped 11.2% after the company reported quarterly EPS of $0.59, beating the $0.48 consensus estimate. Revenue reached $549.9 million, up 2.7% year over year.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $18.47, despite some firms recently lowering their targets.
• Institutional interest increased as Vanguard, Alyeska Investment Group, BlackRock, Norges Bank, and Schroder Investment Management each established new positions in the company.

McGraw Hill, Inc. (NYSE:MH - Get Free Report) gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $11.60, but opened at $12.45. McGraw Hill shares last traded at $12.9280, with a volume of 245,465 shares changing hands.

The company reported $0.59 EPS for the quarter, beating analysts' consensus estimates of $0.48 by $0.11. McGraw Hill had a net margin of 1.68% and a return on equity of 57.92%. The firm had revenue of $549.90 million for the quarter. The company's revenue for the quarter was up 2.7% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

MH has been the topic of several recent analyst reports. Morgan Stanley dropped their price objective on McGraw Hill from $21.00 to $18.00 and set an "overweight" rating on the stock in a research report on Thursday, June 11th. Deutsche Bank Aktiengesellschaft set a $16.00 target price on shares of McGraw Hill in a research note on Friday, June 12th. Needham & Company LLC reiterated a "buy" rating and issued a $19.00 price target on shares of McGraw Hill in a research note on Monday, August 3rd. BMO Capital Markets decreased their price objective on shares of McGraw Hill from $19.00 to $16.00 and set an "outperform" rating for the company in a report on Monday, July 6th. Finally, Wall Street Zen downgraded shares of McGraw Hill from a "buy" rating to a "hold" rating in a research report on Monday, July 20th. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $18.47.

Institutional Investors Weigh In On McGraw Hill

Several hedge funds and other institutional investors have recently made changes to their positions in MH. Vanguard Group Inc. purchased a new stake in McGraw Hill during the third quarter valued at approximately $32,923,000. Alyeska Investment Group L.P. purchased a new stake in shares of McGraw Hill during the third quarter worth about $23,744,000. BlackRock Inc. bought a new stake in shares of McGraw Hill during the second quarter valued at approximately $16,488,000. Norges Bank bought a new stake in McGraw Hill in the 4th quarter valued at $18,485,000. Finally, Schroder Investment Management Group purchased a new stake in shares of McGraw Hill in the fourth quarter worth about $14,856,000.

McGraw Hill Stock Up 11.2%

The stock has a market capitalization of $2.47 billion and a P/E ratio of 64.53. The business has a 50-day moving average price of $10.57 and a 200 day moving average price of $12.29. The company has a current ratio of 0.77, a quick ratio of 0.61 and a debt-to-equity ratio of 3.53.

McGraw Hill Company Profile

McGraw Hill NYSE: MH is a global learning science company specializing in educational content, digital learning platforms, and assessment solutions. The company offers textbooks and course materials for K-12 and higher education, along with professional development resources for corporate and workforce training. Its digital solutions—including adaptive learning platforms and analytics-driven tools—support personalized instruction, progress tracking, and interactive engagement in both classroom and remote environments.

Founded in 1888 in New York City, McGraw Hill has evolved from a technical periodical publisher into one of the world's leading providers of educational content and technology.

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